Bit Deer Releases Q1 2025 Financial Report

A cryptocurrency mining company recently announced its financial report for the first quarter of the fiscal year 2025. The report shows that the company's revenue for the first quarter reached $70.1 million, a year-on-year decrease of 41.3%, and a slight quarter-on-quarter increase of 1.6%. Among these, the revenue from self-operated business was $37.2 million, a year-on-year decrease of 10.4%.

The company's overall gross profit is negative $3.2 million, with a gross margin of -4.6%. This is mainly due to the dry season in Bhutan leading to an increase in electricity prices, which temporarily caused the company to shut down local mines. However, as the second quarter enters the wet season, electricity prices have returned to the level of $0.042/kwh.

It is worth noting that the company's new mining machine sales reached $4.1 million, marking the official launch of its mining machine sales business. The adjusted EBITDA was a negative $56.1 million, compared to a positive $27.3 million for the same period in 2024. The company's net profit reached $410 million, mainly due to the reversal of the fair value of previously accrued convertible notes ($448.7 million) and certain cryptocurrency options ($58.4 million).

In the first quarter of 2025, the company's prepaid accounts increased further to $382 million, up from $310 million in the fourth quarter of 2024. This amount is sufficient to cover the funding required for the maximum wafer production. The new generation of mining machines has entered the shipping stage, and future self-operated and sales pace will depend on market competition. If competition is fierce, the company will prioritize activating its self-operated mining sites. Another new mining machine has also completed wafer production in the first quarter and is currently in the testing phase, expected to officially be put into self-operated mining sites and start sales by the end of the third quarter or in the fourth quarter of 2025.

In response to the U.S. tariff policy, the company plans to complete the construction of its North American assembly plant in the second quarter. Afterwards, sales in North America will come from localized assembly, and although costs will rise by nearly 10%, the impact is relatively small compared to the current tariff levels in Southeast Asia. The Southeast Asian assembly plant will meet the needs of mining sites in non-U.S. regions.

The company's global power infrastructure construction continues to advance rapidly, and it is expected that by the end of the second quarter, the global available power capacity will be close to 1.6GW, with hopes of reaching 1.8GW by the end of this year.

As of April, the hash rate of the company's self-operated mining farm has reached 12.5 Eh/s, and it is expected to rise to 40 Eh/s by October, with the potential to exceed 40 Eh/s by the end of 2025. Although the latest generation of mining machines was just put into the self-operated mining farm in March, the company's overall mining costs are still at least 20% lower than those of its peers. With the complete replacement of old mining machines, the cost advantage will become more apparent, and it is expected that starting from the second quarter, monthly output will show an exponential growth trend.

Market Outlook and Investment Suggestions

Recently, the price of Bitcoin has shown an upward trend, with the potential to break through the previous historical high of $109,000 per coin. Against the backdrop of trade disputes in the United States, the dollar is under pressure, and Bitcoin, as an alternative asset, is beginning to highlight its safe-haven properties similar to gold.

The Federal Reserve recently adopted an "average inflation" policy, which may lead to an early interest rate cut in June, with the annual rate cut expectation raised from once to three times. These factors will provide support for the price of Bitcoin.

The cryptocurrency mining company is about to迎来 a critical moment after experiencing an operational transition period in the fourth quarter of last year and the first quarter of this year. In the coming quarters, the speed of mining machine research and development and the speed of self-operated mining field production will become important observation points. The operational situation in the first quarter of 2025 may be the worst period in the next two years, but it also means that an operational turning point is about to arrive. Among North American Bitcoin mining stocks, this company is still regarded as the best choice.